THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 

ARRANGEMENT OF SECTIONS 

Last updated: 29-6-2021 

CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 
PROHIBITION OF BENAMI TRANSACTIONS 

3.  Prohibition of benami transactions. 
4.  Prohibition of the right to recover property held benami. 
5.  Property held benami liable to confiscation. 
6.  Prohibition on re-transfer of property by benamidar. 

CHAPTER III 
AUTHORITIES 

7.  Adjudicating Authority. 
8.  [Omitted]. 
9.  [Omitted]. 
10.  [Omitted]. 
11.  [Omitted]. 
12.  [Omitted]. 
13.  [Omitted]. 
14.  [Omitted]. 
15.  [Omitted]. 
16.  [Omitted]. 
17.  [Omitted]. 
18.  Authorities and jurisdiction. 
19.  Powers of authorities. 
20.  Certain officers to assist in inquiry, etc. 
21.  Power to call for information. 
22.  Power of authority to impound documents. 
23.  Power of authority to conduct inquiry, etc. 

CHAPTER IV 
ATTACHMENT, ADJUDICATION AND CONFISCATION 

24.  Notice and attachment of property involved in benami transaction. 
25.  Manner of service of notice. 
26.  Adjudication of benami property. 
27.  Confiscation and vesting of benami property. 
28.  Management of properties confiscated. 
29.  Possession of the property. 

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CHAPTER V 
APPELLATE TRIBUNAL 

SECTIONS 

30.  Establishment of Appellate Tribunal. 
31.  Composition, etc., of Appellate Tribunal. 
32.  Qualifications for appointment of Chairperson and Members of Appellate Tribunal. 
33.  Terms and conditions of services of Chairperson and Members of Appellate Tribunal. 
34.  Term of office of Chairperson and Members. 
35.  Removal of Chairperson and Member from office in certain circumstances. 
36.  Vacancies etc., not to invalidate proceedings of Appellate Tribunal. 
37.  Resignation and removal. 
38.  Member to act as Chairperson in certain circumstances. 
39.  Staff of Appellate Tribunal. 
40.  Procedure and powers of Appellate Tribunal. 
41.  Distribution of business amongst Benches of Appellate Tribunal. 
42.  Power of Chairperson of Appellate Tribunal to transfer cases. 
43.  Decision to be by majority. 
44.  Members, etc., to be public servants. 
45.  Bar of jurisdiction of civil courts. 
46.  Appeals to Appellate Tribunal. 
47.  Rectification of mistakes. 
48.  Right to representation. 
49.  Appeal to High Court. 

CHAPTER VI 
SPECIAL COURTS 

50.  Special Courts. 
51.  Application of Code of Criminal Procedure, 1973 to proceedings before Special Court. 
52.  Appeal and revision. 

CHAPTER VII 
OFFENCES AND PROSECUTION 

53.  Penalty for benami transaction. 
54.  Penalty for false information. 
54A. Penalty for failure to comply with notices or furnish information. 
54B. Proof of entries in records or documents. 
55.  Previous sanction. 

CHAPTER VIII 
MISCELLANEOUS 

56.  Repeal of provisions of certain Acts. 
57.  Certain transfers to be null and void. 
58.  Exemption. 
59.  Power of Central Government to issue directions, etc. 
60.  Application of other laws not barred. 
61.  Offences to be non-cognizable. 
62.  Offences by companies. 

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SECTIONS 

63.  Notice, etc., not to be invalid on certain grounds. 
64.  Protection of action taken in good faith. 
65.  Transfer of pending cases. 
66.  Proceedings, etc., against legal representative. 
67.  Act to have overriding effect. 
68.  Power to make rules. 
69.  Laying of rules and notifications before Parliament. 
70.  Power to remove difficulties. 
71.  Transitional provision. 
72.  Repeal and saving. 

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THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988  

ACT NO. 45 OF 1988 

[5th September, 1988.] 

An  Act  to  prohibit  benami  transactions  and  the  right  to  recover  property  held  benami  and  for 

matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Thirty-ninth Year of the Republic of India as follows:— 

1[CHAPTER I 

PRELIMINARY] 

1. Short title, extent and commencement.—2[(1) This Act may be called the Prohibition of Benami 

Property Transactions Act, 1988.] 

(2) It extends to the whole of India 3***. 

(3) The provisions of sections 3, 5 and 8 shall come into force at once, and the remaining provisions 

of this Act shall be deemed to have come into force on the 19th day of May, 1988. 

4[2. Definitions.— In this Act, unless the context otherwise requires,— 

(1) “Adjudicating Authority” means the Adjudicating Authority 5[referred to in] section 7; 

(2)  “Administrator”  means  an  Income-tax  Officer  as  defined  in  clause  (25)  of  section  2  of  the 

Income-tax Act, 1961 (43 of 1961); 

(3) “Appellate Tribunal” means the Appellate Tribunal established under section 30; 

(4)  “Approving  Authority”  means  an  Additional  Commissioner  or  a  Joint  Commissioner  as 
defined in clauses (1C) and (28C) respectively of section 2 of the Income-tax Act, 1961 (43 of 1961); 

(5)  “attachment”  means  the  prohibition  of  transfer,  conversion,  disposition  or  movement  of 

property, by an order issued under this Act; 

(6) “authority” means an authority referred to in sub-section (1) of section 18; 

(7)  “banking  company”  means  a  company  to  which  the  provisions  of  the  Banking  Regulation 
Act, 1949 (10 of 1949), applies and includes any bank or banking institution referred to in section 51 
of that Act; 

(8)  “benami  property”  means  any  property  which  is  the  subject  matter  of  a  benami  transaction 

and also includes the proceeds from such property; 

(9) “benami transaction” means,— 

(A) a transaction or an arrangement— 

(a) where a property is transferred to, or  is held by, a person, and the consideration for 

such property has been provided, or paid by, another person; and 

(b)  the  property  is  held  for  the  immediate  or  future  benefit,  direct  or  indirect,  of  the 

person who has provided the consideration, 

except when the property is held by— 

(i) a Karta, or a member of a Hindu undivided family, as the case may be, and the property is 

held for his benefit or benefit of other members in the family and the consideration for such  

1. Ins. by Act 43 of 2016, s. 2 (w.e.f. 1-11-2016). 
2. Subs. by s. 3, ibid., for sub-section (1) (w.e.f. 1-11-2016). 
3. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule 
    (w.e.f. 31-10- 2019). 
4. Subs. by Act 43 of 2016, s. 4, for section 2 (w.e.f. 1-11-2016). 
5. Subs. by Act 13 of 2021, s. 154, for “appointed under” (w.e.f. 1-7-2021). 

4 

 
 
                                                      
property has been provided or paid out of the known sources of the Hindu undivided family; 
(ii) a person standing in a fiduciary capacity for the benefit of another person towards whom 
he  stands  in  such  capacity  and  includes  a  trustee,  executor,  partner,  director  of  a  company,  a 
depository or a participant  as  an  agent  of  a  depository  under  the  Depositories  Act,  1996  
(22 of 1996) and any other person as may be notified by the Central Government for this purpose; 

(iii) any person being an individual in the name of his spouse or in the name of any child of 
such  individual  and  the  consideration  for  such  property  has  been  provided  or  paid  out  of  the 
known sources of the individual; 

(iv) any person in the name of his brother or sister or lineal ascendant or descendant, where 
the names of brother or sister or lineal ascendant or descendant and the individual appear as joint- 
owners in any document, and the consideration for such property has been provided or paid out of 
the known sources of the individual; or 

(B) a transaction or an arrangement in respect of a property carried out or made in a fictitious 

name; or 

(C) a transaction or an arrangement in respect of a property where the owner of the property 

is not aware of, or, denies knowledge of, such ownership; 

(D) a transaction or an arrangement in respect of a property where  the person providing the 

consideration is not traceable or is fictitious; 

Explanation.—For the removal of doubts, it is hereby declared that benami transaction shall not 
include any transaction involving the allowing of possession of any property to be taken or retained in 
part  performance  of  a  contract  referred  to   in   section   53A   of   the   Transfer   of   Property 
Act, 1882 (4 of 1882), if, under any law for the time being in force,— 

(i) consideration for such property has been provided by the person to whom possession of 
property has been allowed but the person who has granted possession thereof continues to hold 
ownership of such property; 

(ii) stamp duty on such transaction or arrangement has been paid; and 

(iii) the contract has been registered. 

(10) “benamidar” means a person or a fictitious person, as the case may be, in whose name the 

benami property is transferred or held and includes a person who lends his name; 

(11) “Bench” means a Bench of the Adjudicating Authority or the Appellate Tribunal, as the case 

may be; 

(12) “beneficial owner” means a person, whether his identity is known or not, for whose benefit 

the benami property is held by a benamidar; 

(13) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of 

Revenue Act, 1963 (54 of 1963); 

(14) “director”  shall  have the  same  meaning  as  assigned  to  it in  clause (34)  of  section  2  of  the 

Companies Act, 2013 (18 of 2013); 

(15)  “executor”  shall  have  the  same  meaning  as  assigned  to  it  in  clause  (c)  of  section  2  of  the 

Indian Succession Act, 1925 (39 of 1925); 

(16) “fair market value”, in relation to a property, means— 

(i) the price that the property would ordinarily fetch on sale in the open market on the date of 

the transaction; and 

(ii)  where  the  price  referred  to  in  sub-clause  (i)  is  not  ascertainable,  such  price  as  may  be 

determined in accordance with such manner as may be prescribed; 

(17) “firm” shall have the same meaning as assigned to it in section 4 of the Indian Partnership 
Act,  1932  (9  of  1932)  and  shall  include  a  limited  liability  partnership  as  defined  in  the  Limited 
Liability Partnership Act, 2008 (6 of 2009); 

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(18) “High Court” means— 

(i) the High Court within the jurisdiction of which the aggrieved party ordinarily resides or 

carries on business or personally works for gain; and 

(ii) where  the  Government  is  the  aggrieved  party,  the  High  Court  within  the jurisdiction  of 
which  the  respondent,  or  in  a  case  where  there  are  more  than  one  respondent,  any  of  the 
respondents, ordinarily resides or carries on business or personally works for gain; 

(19) “Initiating Officer” means an Assistant Commissioner or a Deputy Commissioner as defined 

in clauses (9A) and (19A) respectively of section 2 of the Income-tax Act, 1961 (43 of 1961); 

(20)  “Member”  means  the  Chairperson  or  the  Member  of  the  Adjudicating  Authority  or  the 

Appellate Tribunal, as the case may be; 

(21)  “notification”  means  a  notification  published  in  the  Official  Gazette  and  the  expression 

“notified” shall be construed accordingly; 

(22) “partner” shall have the same meaning as assigned to it in section 4 of the Indian Partnership 

Act, 1932 (9 of 1932), and shall include,— 

(a) any person who, being a minor, has been admitted to the benefits of partnership; and 

(b)  a  partner  of  a  limited  liability  partnership  formed  and  registered  under  the  Limited 

Liability Partnership Act, 2008 (6 of 2009); 

(23)  “partnership”  shall  have  the  same  meaning  as  assigned  to  it  in  section  4  of  the  Indian 
Partnership  Act,  1932  (9  of  1932),  and  shall  include  a  limited  liability  partnership  formed  and 
registered under the Limited Liability Partnership Act, 2008 (6 of 2009); 

(24) “person” shall include— 

(i) an individual; 

(ii) a Hindu undivided family; 

(iii) a company; 

(iv) a firm; 

(v) an association of persons or a body of individuals, whether incorporated or not; 

(vi) every artificial juridical person, not falling under sub-clauses (i) to (v); 

(25) “prescribed” means prescribed by rules made under this Act; 

(26) “property” means assets of any kind, whether movable or immovable, tangible or intangible, 
corporeal  or  incorporeal  and  includes  any  right  or  interest  or  legal  documents  or  instruments 
evidencing  title  to  or  interest  in  the  property  and  where  the  property  is  capable  of  conversion  into 
some  other  form,  then  the  property  in  the  converted  form  and  also  includes  the  proceeds  from  the 
property; 

(27) “public financial institution” shall have the same meaning as assigned to it in clause (72) of 

section 2 of the Companies Act, 2013 (18 of 2013); 

(28) “Special Court” means a Court of Session designated as Special Court under sub-section (1) 

of section 50; 

(29) “transfer” includes sale, purchase or any other form of transfer of right, title, possession or 

lien; 

(30) “trustee” means the trustee as defined in the section 3 of the Indian Trusts Act, 1882 (2 of 

1882); 

(31)  words  and  expressions  used  herein  and  not  defined  in  this  Act  but  defined  in  the  Indian 
Trusts Act, 1882 (2 of 1882), the Indian Succession Act, 1925 (39 of 1925), the Indian Partnership 
Act, 1932 (9 of 1932), the Income-tax Act, 1961 (43 of 1961), the Depositories  Act, 

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1996 (22 of 1996), the Prevention of Money-Laundering Act, 2002 (15 of 2003), the Limited 
Liability Partnership Act, 2008 (6 of 2009) and the Companies Act, 2013 (18 of 2013), shall have the 
same meanings respectively assigned to them in those Acts.] 

1[CHAPTER II 
PROHIBITION OF BENAMI TRANSACTIONS] 

3. Prohibition of benami transactions.—(1) No person shall enter into any benami transaction. 
2* 
3[(2)] Whoever enters into any benami transaction shall be punishable with imprisonment for a term 

* 

* 

* 

* 

which may extend to three years or with fine or with both. 

4[(3)  Whoever  enters  into  any  benami  transaction  on  and  after  the  date  of  commencement  of  the 
Benami  Transactions  (Prohibition)  Amendment  Act,  2016  (43  of  2016)  shall,  notwithstanding  anything 
contained in sub-section (2), be punishable in accordance with the provisions contained in Chapter VII.] 

5* 

* 

* 

* 

* 

4.  Prohibition  of  the  right  to  recover  property  held  benami.—(1)  No  suit,  claim  or  action  to 
enforce any right in respect of any property held benami against the person in whose name the property is 
held or against any other person shall lie by or on behalf of a person claiming to be the real owner of such 
property. 

(2) No defence based on any right in respect of any property held benami, whether against the person 
in  whose  name  the  property  is  held  or  against  any  other  person,  shall  be  allowed  in  any  suit,  claim  or 
action by or on behalf of a person claiming to be the real owner of such property. 

6* 

* 

* 

* 

* 

7[5. Property held benami liable to confiscation.—Any property, which is subject matter of benami 

transaction, shall be liable to be confiscated by the Central Government. 

6. Prohibition on re-transfer of property by benamidar.—(1) No person, being a benamidar shall 
re-transfer  the  benami  property  held  by  him  to  the  beneficial  owner  or  any  other  person  acting  on  his 
behalf. 

(2)  Where  any  property  is  re-transferred  in  contravention  of  the  provisions  of  sub-section  (1),  the 

transaction of such property shall be deemed to be null and void. 

(3) The provisions of sub-sections (1) and (2) shall not apply to a transfer made in accordance with 

the provisions of section 190 of the Finance Act, 2016 (28 of 2016).] 

8[CHAPTER III 

AUTHORITIES 

9[7. Adjudicating Authority.—The competent authority authorised under sub-section (1) of section 5 
of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976) shall 
be  the  Adjudicating  Authority  to  exercise  jurisdiction,  powers  and  authority  conferred  by  or  under  this 
Act.] 

8. [Composition of Authority].—Omitted by Act 13 of 2021, s. 156 (w.e.f. 01-07-2021). 

1. Ins. by Act 43 of 2016, s. 5 (w.e.f. 1-11-2016). 
2. Omitted by s. 6, ibid. (w.e.f. 1-11-2016). 
3. Sub-section (3) renumbered as sub-section (2) thereof by s. 6, ibid. (w.e.f. 1-11-2016). 
4. Ins. by s. 6, ibid (w.e.f. 1-11-2016). 
5. Omitted by s. 6, ibid. (w.e.f. 1-11-2016). 
6. Omitted by s. 7, ibid. (w.e.f. 1-11-2016). 
7. Subs. by s. 8, ibid., for sections 5 and 6 (w.e.f. 1-11-2016). 
8. Ins. by s. 9, ibid. (w.e.f. 1-11-2016). 
9. Subs. by Act 13 of 2021, s. 155, for section 7 (w.e.f. 1-7-2021). 
7 

 
 
 
 
                                                      
 
9. [Qualifications for appointment of Chairperson and Members].—Omitted by Act 13 of 2021, s. 

156 (w.e.f. 01-07-2021). 

10. [Constitution of Benches of Adjudicating Authority].—Omitted by ibid, s. 156 (w.e.f. 01-07-

2021). 

11. [Power of Adjudicating Authority to regulate its own procedure].— Omitted by ibid, s. 156 

(w.e.f. 01-07-2021). 

12. [Term of office of Chairperson and Members of Adjudicating Authority].—Omitted by ibid, 

s. 156 (w.e.f. 01-07-2021). 

13.  [Terms  and  conditions  of  services  of  Chairperson  and  Members  of  Adjudicating 

Authority].—Omitted by ibid, s. 156 (w.e.f. 01-07-2021). 

14. [Removal of Chairperson and Members of Adjudicating Authority].—Omitted by ibid, s. 156 

(w.e.f. 01-07-2021). 

15. [Member to act as Chairperson in certain circumstances].—Omitted by ibid, s. 156 (w.e.f. 01-

07-2021). 

16. [Vacancies, etc., not to invalidate proceedings of Adjudicating Authority].—Omitted by ibid, 

s. 156 (w.e.f. 01-07-2021). 

17.  [Officers  and  employees  of  Adjudicating  Authority].—Omitted  by  ibid,  s.  156  (w.e.f.  01-07-

2021). 

18. Authorities and jurisdiction.—(1) The following shall be the authorities for the purposes of this 

Act, namely:— 

(a) the Initiating Officer; 

(b) the Approving Authority; 

(c) the Administrator; and 

(d) the Adjudicating Authority. 

(2)  The  authorities  shall  exercise  all  or  any  of  the  powers  and  perform  all  or  any  of  the  functions 
conferred on, or, assigned, as the case may be, to it under this Act or in accordance with such rules as may 
be prescribed. 

19.  Powers  of  authorities.—(1)  The  authorities  shall,  for  the  purposes  of  this  Act,  have  the  same 
powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a 
suit in respect of the following matters, namely:— 

(a) discovery and inspection; 

(b) enforcing the attendance of any person, including any official of a banking company or a public 

financial institution or any other intermediary or reporting entity, and examining him on oath; 

(c) compelling the production of books of account and other documents; 

(d) issuing commissions; 

(e) receiving evidence on affidavits; and 

(f) any other matter which may be prescribed. 

(2)  All  the  persons  summoned  under  sub-section  (1)  shall  be  bound  to  attend  in  person  or  through 
authorised agents, as any authority under this Act may direct, and shall be bound to state the truth upon 
any subject respecting which they are examined or make statements, and produce such documents as may 
be required. 

(3)  Every  proceeding  under  sub-section  (1)  or  sub-section  (2)  shall  be  deemed  to  be  a  judicial 

proceeding within the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860). 

(4)  For the purposes of this Act, any authority under this Act may requisition the service of any police 
officer or of any officer of the Central Government or State Government or of both to assist him for all or 
any of the purposes specified in sub-section (1), and it shall be the duty of every such officer to comply 
with the requisition or direction. 

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(5)  For the purposes of this section, “reporting entity” means any intermediary or any authority or of 

the Central or the State Government or any other person as may be notified in this behalf. 

Explanation.—For  the  purposes  of  sub-section  (5),  “intermediary”  shall  have  the  same  meaning  as 
assigned to it in clause (n) of sub-section (1) of  section 2  of  the  Prevention  of  Money-Laundering  
Act, 2002 (15 of 2003). 

20. Certain officers to assist in inquiry, etc.—The following officers shall assist the authorities in the 

enforcement of this Act, namely:— 

(a) income-tax authorities appointed under sub-section (1) of  section 117 of the  Income-tax  Act, 

1961 (43 of 1961); 

(b) officers of the Customs and Central Excise Departments; 

(c) officers appointed under sub-section (1) of section 5 of the Narcotic Drugs and Psychotropic 

Substances Act, 1985 (61 of 1985); 

(d)  officers  of  the  stock  exchange  recognised  under  section  4  of  the  Securities  Contracts 

(Regulation) Act, 1956 (42 of 1956); 

(e)  officers  of  the  Reserve  Bank  of  India  constituted  under  sub-section  (1)  of  section  3  of  the 

Reserve Bank of India Act, 1934 (2 of 1934); 

(f) police; 

(g) officers of enforcement appointed under sub-section (1) of section 36 of the Foreign Exchange 

Management Act, 1999 (40 of 1999); 

(h)  officers  of  the  Securities  and  Exchange  Board  of  India  established  under  section  3  of  the 

Securities and Exchange Board of India Act, 1992 (15 of 1992); 

(i) officers of any other body corporate constituted or established under a Central or a State Act; 

And 

(j) such other officers of the Central Government, State Government, local authorities or banking 

companies as the Central Government may, by notification, specify, in this behalf. 

21.  Power  to  call  for  information.—(1)  The  Initiating  Officer  or  the  Approving  Authority  or  the 
Adjudicating  Authority  shall  have  power  to  require  any  officer  of  the  Central  Government  or  State 
Government or a local body or any person or officer who is responsible for registering and maintaining 
books of account or other documents containing a record of any transaction relating to any property or any 
other person to furnish any information in relation to any person, point or matter as in his opinion shall be 
useful for or relevant for the purposes of this Act. 

(2)  Without  prejudice  to  sub-section  (1),  every  officer  or  person  referred  to  in  sub-section  (1)  shall 

furnish such information to any authority under this Act in such form and manner as may be prescribed. 

22.  Power  of  authority  to  impound  documents.—(1)  Where  any  books  of  account  or  other 
documents are produced before the authority in any proceedings under this Act and the authority in this 
behalf  has  reason  to  believe  that  any  of  the  books  of  account  or  other  documents  are  required  to  be 
impounded and retained for any inquiry under this Act, it may impound and retain the books of account or 
other documents for a period not exceeding three months from the date of order of attachment made by the 
Adjudicating Authority under sub-section (3) of section 26: 

Provided  that  the  period  for  retention  of  the  books  of  account  or  other  documents  may  be  extended 
beyond a period exceeding three months from the date of order of attachment made by the Adjudicating 
Authority  under  sub-section  (3)  of  section  26  where  the  authority  records  in  writing  the  reasons  for 
extending the same. 

(2) Where  the  authority  impounding  and  retaining  the  books  of  account  or  other  documents,  under 
sub-section  (1)  is  the  Initiating  Officer,  he  shall  obtain  approval  of  the  Approving  Authority  within  a 
period  of  fifteen  days  from  the  date  of  initial  impounding  and  seek  further  approval  of  the  Approving 
Authority for extending the period of initial retention, before the expiry of the period of initial retention, if 
so required. 

9 

 
(3) The period of retention of the books of account or other documents under sub-section (1) shall in 

no case exceed a period of thirty days from the date of conclusion of all the proceedings under this Act. 

(4)  The  person,  from  whom  the  books  of  account  or  other  documents  were  impounded  under  

sub-section (1), shall be entitled to obtain copies thereof. 

(5)  On  the  expiry  of  the  period  specified  under  sub-section  (1),  the  books  of  account  or  other 
documents shall  be  returned  to  the person  from  whom  such  books  of account or  other documents  were 
impounded  unless  the  Approving  Authority  or  the  Adjudicating  Authority  permits  their  release  to  any 
other person. 

23.  Power  of  authority  to  conduct  inquiry,  etc.—The  Initiating  Officer,  after  obtaining  prior 
approval of the Approving Authority, shall have power to conduct or cause to be conducted any inquiry or 
investigation  in  respect  of  any  person,  place,  property,  assets,  documents,  books  of  account  or  other 
documents, in respect of any other relevant matters under this Act. 

1[Explanation.—For the removal of doubts, it is hereby clarified that nothing contained in this section 
shall apply and shall be deemed to have ever applied where a notice under sub-section (1) of section 24 has 
been issued by the Initiating Officer.] 

CHAPTER IV 

ATTACHMENT, ADJUDICATION AND CONFISCATION 

24. Notice and attachment of property involved in benami transaction.—(1) Where the Initiating 
Officer, on the basis of material in his possession, has reason to believe that any person is a benamidar in 
respect of a property, he may, after recording reasons in writing, issue a notice to the person to show cause 
within  such  time  as  may  be  specified  in  the  notice  why  the  property  should  not  be  treated  as  benami 
property. 

(2)   Where a notice under sub-section (1) specifies any property as being held by a benamidar referred 
to in that sub-section, a copy of the notice shall also be issued to the beneficial owner if his identity is 
known. 

(3) Where the Initiating Officer is of the opinion that the person in possession of the property held 
benami  may  alienate  the  property  during  the  period  specified  in  the  notice,  he  may,  with  the  previous 
approval of the Approving Authority, by order in writing, attach provisionally the property in the manner 
as may be prescribed, for a period not exceeding ninety days 2[from the last day of the month in which the 
notice under sub-section (1) is issued.] 

(4) The Initiating Officer, after making such inquires and calling for such reports or evidence as he 
deems fit and taking into account all relevant materials, shall, within a period of ninety days  2[from the 
last day of the month in which the notice under sub-section (1) is issued],— 

(a) where the provisional attachment has been made under sub-section (3),— 

(i) pass an order continuing the provisional attachment of the property with the prior approval 
of the Approving Authority, till the passing of the order by the Adjudicating Authority under sub-
section (3) of section 26; or 

(ii)  revoke  the  provisional  attachment  of  the  property  with  the  prior  approval  of  the 

Approving Authority; 
(b) where provisional attachment has not been made under sub-section (3),— 

(i) pass an order provisionally attaching the property with the prior approval of the Approving 
Authority,  till  the  passing  of  the  order  by  the  Adjudicating  Authority  under  sub-section  (3)  of 
section 26; or 

1. Ins. by Act 23 of 2019, s. 173 (w.e.f. 1-11-2016). 
2. Subs. by Act 23 of 2019, s. 174, for “from the date of issue of notice under sub-section (1)” (w.e.f. 1-9-2019). 

10 

 
 
 
                                                      
(ii) decide not to attach the property as specified in the notice, with the prior approval of the 

Approving Authority. 

1[Explanation.— For  the  purposes  of  this  section,  in  computing  the  period  of  limitation,  the  period 

during which the proceeding is stayed by an order or injunction of any court shall be excluded: 

Provided  that  where  immediately  after  the  exclusion  of  the  aforesaid  period,  the  period  of  limitation 
referred to in sub-section (4) available to the Initiating Officer for passing order of attachment is less than 
thirty days, such remaining period shall be deemed to be extended to thirty days: 

Provided  further  that  where  immediately  after  the  exclusion  of  the  aforesaid  period,  the  period  of 
limitation referred to in sub-section (5) available to the Initiating Officer to refer the order of attachment to 
Adjudicating  Authority  is  less than seven  days,  such remaining  period shall  be deemed  to  be extended to 
seven days.] 

(5) Where the Initiating Officer passes an order continuing the provisional attachment of the property 
under sub-clause (i) of clause (a) of sub-section (4) or passes an order provisionally attaching the property 
under  sub-clause  (i)  of  clause  (b)  of  that  sub-section,  he  shall,  within  fifteen  days  from  the  date  of  the 
attachment, draw up a statement of the case and refer it to the Adjudicating Authority. 

25. Manner of service of notice.—(1) A notice under sub-section (1) of section 24 may be served on 
the person named therein either by post or as if it were a summons issued by a Court under the Code of 
Civil Procedure, 1908 (5 of 1908). 

(2) Any notice referred to in sub-section (1) may be addressed— 

(i) in case of an individual, to such individual; 

(ii) in the case of a firm, to the managing partner or the manager of the firm; 

(iii) in the case of a Hindu undivided family, to Karta or any member of such family; 

(iv) in the case of a company, to the principal officer thereof; 

(v)  in  the  case  of  any  other  association  or  body  of  individuals,  to  the  principal  officer  or  any 

member thereof; 

(vi)  in  the  case  of  any  other  person  (not  being  an  individual),  to  the  person  who  manages  or 

controls his affairs. 

26.  Adjudication  of  benami  property.—(1)  On  receipt  of  a  reference  under  sub-section  (5)  of  
section  24,  the  Adjudicating  Authority  shall  issue  notice,  to  furnish  such  documents,  particulars  or 
evidence as is considered necessary on a date to be specified therein, on the following persons, namely:— 

(a) the person specified as a benamidar therein; 

(b) any person referred to as the beneficial owner therein or identified as such; 

(c) any interested party, including a banking company; 

(d) any person who has made a claim in respect of the property: 

Provided that the Adjudicating Authority shall issue notice within a period of thirty days from the 

date on which a reference has been received: 

Provided further that the notice shall provide a period of not less than thirty days to the person to 

whom the notice is issued to furnish the information sought. 
(2)  Where  the  property  is  held  jointly  by  more  than  one  person,  the  Adjudicating  Authority  shall 

make all endeavours to serve notice to all persons holding the property: 

Provided that where the notice is served on anyone of the persons, the service of notice shall not be 

invalid on the ground that the said notice was not served to all the persons holding the property. 

(3) The Adjudicating Authority shall, after— 

(a) considering the reply, if any, to the notice issued under sub-section (1); 

1. Ins. by Act 23 of 2019, s. 174 (w.e.f. 1-9-2019). 

11 

 
                                                      
(b)  making  or  causing  to  be  made  such  inquiries  and  calling  for  such  reports  or  evidence  as  it 

deems fit; and 

(c) taking into account all relevant materials, 

provide  an  opportunity  of  being  heard  to  the  person  specified  as  a  benamidar  therein,  the  Initiating 
Officer, and any other person who claims to be the owner of the property, and, thereafter, pass an order— 

(i) holding the property not to be a benami property and revoking the attachment order; or 
(ii) holding the property to be a benami property and confirming the attachment order, in all 

other cases. 

(4) Where the Adjudicating Authority is satisfied that some part of the properties in respect of which 
reference has been made to him is benami property, but is not able to specifically identify such part, he 
shall record a finding to the best of his judgment as to which part of the properties is held benami. 

(5) Where in the course of proceedings before it, the Adjudicating Authority has reason to believe that 
a  property,  other  than  a  property  referred  to  it  by  the  Initiating  Officer  is  benami  property,  it  shall 
provisionally attach the property and the property shall be deemed to be a property referred to it  on  the 
date of receipt of the reference under sub-section (5) of section 24. 

(6) The Adjudicating Authority may, at any stage of the proceedings, either on the application of any 
party,  or  suo  motu,  strike  out  the  name  of  any  party  improperly  joined  or  add  the  name  of  any  person 
whose presence before the Adjudicating Authority may be necessary to enable him to adjudicate upon and 
settle all the questions involved in the reference. 

(7) No order under sub-section (3) shall be passed after the expiry of one year from the end of the 

month in which the reference under sub-section (5) of section 24 was received. 

1[Explanation.—For the purposes of this sub-section, in computing the period of limitation, the period 

during which the proceeding is stayed by an order or injunction of any court shall be excluded: 

Provided  that  where  immediately  after  the  exclusion  of  the  aforesaid  period,  the  period  of  limitation 

available to the Adjudicating Authority for passing order is less than sixty days, such remaining period shall 

be deemed to be extended to sixty days.] 

2[Provided that where the time limit for passing order under this sub-section expires during the period 

beginning from the 1st day of July, 2021 and ending on the 29th day of September, 2021, the time limit for 

passing such order shall be extended to the 30th day of September, 2021.] 

(8) The benamidar or any other person who claims to be the owner of the property may either appear 

in person or take the assistance of an authorised representative of his choice to present his case. 

Explanation.—For  the  purposes  of  sub-section  (8),  authorised  representative  means  a  person 

authorised in writing, being— 

(i)  a  person  related  to  the  benamidar  or  such  other  person  in  any  manner,  or  a  person  regularly 

employed by the benamidar or such other person as the case may be; or 

(ii)  any  officer  of  a  scheduled  bank  with  which  the  benamidar  or  such  other  person  maintains  an 

account or has other regular dealings; or 

(iii) any legal practitioner who is entitled to practice in any civil court in India; or 
(iv) any person who has passed any accountancy examination recognised in this behalf by the Board; 

or 

(v) any person who has acquired such educational qualifications as the Board may prescribe for this 

purpose. 

27. Confiscation and vesting of benami property.—(1) Where an order is passed in respect of any 
property  under  sub-section  (3)  of  section  26  holding  such  property  to  be  a  benami  property,  the 
Adjudicating Authority shall, after giving an opportunity of being heard to the person concerned, make an 
order confiscating the property held to be a benami property: 

1. Ins. by Act 23 of 2019, s. 175 (w.e.f. 1-9-2019). 
2. Ins. by Act 13 of 2021, s. 157 (w.e.f. 1-7-2021). 

12 

 
                                                      
Provided  that  where  an  appeal  has  been  filed  against  the  order  of  the  Adjudicating  Authority,  the 
confiscation  of  property  shall  be  made  subject  to  the  order  passed  by  the  Appellate  Tribunal  under  
section 46: 

Provided  further  that  the  confiscation  of  the  property  shall  be  made  in  accordance  with  such 

procedure as may be prescribed. 

(2)  Nothing  in  sub-section  (1)  shall  apply  to  a  property  held  or  acquired  by  a  person  from  the 
benamidar  for  adequate  consideration,  prior  to  the  issue  of  notice  under  sub-section  (1)  of  section  24 
without his having knowledge of the benami transaction. 

(3) Where an order of confiscation has been made under sub-section (1), all the rights and title in such 
property shall vest absolutely in the Central Government free of all encumbrances and no compensation 
shall be payable in respect of such confiscation. 

(4) Any right of any third person created in such property with a view to defeat the purposes of this 

Act shall be null and void. 

(5) Where no order of confiscation is made upon the proceedings under this Act attaining finality, no 

claim shall lie against the Government. 

28. Management of properties confiscated.—(1) The Administrator shall have the power to receive 
and manage the property, in relation to which an order of confiscation under sub-section (1) of section 27 
has been made, in such manner and subject to such conditions, as may be prescribed. 

(2) The Central Government may, by order published in the Official Gazette, notify  as  many of its 

officers as it thinks fit, to perform the functions of Administrators. 

(3)  The  Administrator  shall  also  take  such  measures,  as  the  Central  Government  may  direct,  to 
dispose of the property which is vested in the Central Government under sub-section (3) of section 27, in 
such manner and subject to such conditions as may be prescribed. 

29. Possession  of the  property.—(1)  Where  an  order  of confiscation  in respect  of  a property  under 
sub-section (1) of section 27, has been made, the Administrator shall proceed to take the possession of the 
property. 

(2) The Administrator shall,— 

(a) by notice in writing, order within seven days of the date of the service of notice to any person, 
who may be in possession of the  benami  property, to surrender or deliver possession thereof to the 
Administrator or any other person duly authorised in writing by him in this behalf; 

(b)  in  the  event  of  non-compliance  of  the  order  referred  to  in  clause  (a),  or  if  in  his  opinion, 
taking over of immediate possession is warranted, for the purpose of forcibly taking over possession, 
requisition  the  service  of  any  police  officer  to  assist  him  and  it  shall  be  the  duty  of  the  officer  to 
comply with the requisition. 

CHAPTER V 

APPELLATE TRIBUNAL 

30. Establishment of Appellate Tribunal.—The Central Government shall, by notification, establish 

an Appellate Tribunal to hear appeals against the orders of 1[any authority] under this Act. 

31.  Composition  etc.,  of  Appellate  Tribunal.—(1)  The  Appellate  Tribunal  shall  consist  of  a 
Chairperson and at least two other Members of which one shall be a Judicial Member and other shall be an 
Administrative Member. 

(2) Subject to the provisions of this Act,— 

(a) the jurisdiction of the Appellate Tribunal may be exercised by Benches thereof; 

(b) a Bench may be constituted by the Chairperson with two Members as the Chairperson may 

deem fit; 

1. Subs. by Act 23 of 2019, s. 176, for “the Adjudicating Authority” (w.e.f. 1-9-2019). 

13 

 
 
                                                      
(c) the Benches of the Appellate Tribunal shall ordinarily sit in the National  Capital Territory of 
Delhi and at such other places as the Central Government may, in consultation with the Chairperson, 
by notification, specify; 

(d)  the  Central  Government  shall,  by  notification,  specify  the  areas  in  relation  to  which  each 

Bench of the Appellate Tribunal may exercise its jurisdiction. 

(3) Notwithstanding  anything  contained  in  sub-section  (2),  the  Chairperson  may  transfer  a  Member 

from one Bench to another Bench. 

32. Qualifications for appointment of Chairperson and Members of Appellate Tribunal.—(1) A 
person shall not be qualified for appointment as Chairperson of the Appellate Tribunal unless he is a sitting 
or retired Judge of a High Court, who has completed not less than five years’ of service. 
(2) A person shall not be qualified for appointment as a Member unless he— 

(a) in the case of a Judicial Member, has been a Member of the Indian Legal Service and has held 

the post of Additional Secretary or equivalent post in that Service; 

(b) in the case of an Administrative Member, has been a Member of the Indian Revenue Service 

and has held the post of Chief Commissioner of Income tax or equivalent post in that Service. 

(3) No sitting Judge of a High Court shall be appointed under this section except after consultation 

with the Chief Justice of the High Court. 

(4) The Chairperson or a Member holding a post as such in any other Tribunal, established under any 
law for the time being in force, in addition to his being the Chairperson or a Member of that Tribunal, 
may be appointed as the Chairperson or a Member, as the case may be, of the Appellate Tribunal under 
this Act. 

33. Terms and conditions of services of Chairperson and Members of Appellate Tribunal.—(1) 
The salary and allowances payable to, and the other terms and conditions of service of the Chairperson and 
other  Members  shall  be  such  as  may  be  prescribed  and  shall  not  be  varied  to  their  disadvantage  during 
their tenure. 

(2) Any vacancy caused to the office of the Chairperson or any other Member shall be filled up within 

a period of three months from the date on which such vacancy occurs. 

34. Term of office of Chairperson and Members.—The Chairperson and Members of the Appellate 
Tribunal shall hold office for a term not exceeding five years from the date on which they enter upon their 
office,  or  until  they  attain  the  age  of  sixty-five  years,  whichever  is  earlier  and  shall  not  be  eligible  for 
reappointment. 

35. Removal of Chairperson and Member from office in certain circumstances.—(1) The Central 
Government  may,  in  consultation  with  the  Chief  Justice  of  High  Court,  remove  from  office  of  the 
Chairperson or any Member, who— 

(a) has been adjudged as an insolvent; or 

(b) has been convicted of an offence which, in the opinion of the Central Government involves 

moral turpitude; or 

(c) has become physically or mentally incapable; or 

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or 

(e) has so abused his position as to render his continuance in office prejudicial to the public interest. 

(2)  The  Chairperson  or  Judicial  Member  shall  not  be  removed  from  his  office  except  by  an  order 
made by the Central Government after an inquiry made by Chief Justice of the High Court in which the 
Chairperson  or  Judicial  Member  has  been  informed  of  the  charges  against  him  and  given  a  reasonable 
opportunity of being heard in respect of those charges. 

(3) The Central Government may suspend from office the Chairperson or Judicial Member in respect 
of whom a reference of conducting an inquiry has been made to the Chief Justice of the High Court under 
sub-section (2), until the Central Government passes an order on receipt of the report of inquiry made by 

14 

 
Chief Justice of the High Court on the reference. 

(4) The Central Government may regulate the procedure for inquiry referred to in sub-section (2) in 

the manner as may be prescribed. 

(5)  The  Administrative  Member  may  be  removed  from  his  office  by  an  order  of  the  Central 
Government on the grounds specified in sub-section (1) and in accordance with the procedure notified by 
the Central Government: 

Provided  that  the  Administrative  Member  shall  not  be  removed  unless  he  has  been  given  an 

opportunity of being heard in the matter. 

36. Vacancies, etc., not to invalidate proceedings of Appellate Tribunal.—No act or proceeding of 

the Appellate Tribunal shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of the Tribunal; or 

(b) any defect in the appointment of a person acting as a Member of the Tribunal; or 

(c) any irregularity in the procedure of the Tribunal not affecting the merits of the case. 

37.  Resignation  and  removal.—The  Chairperson  or  any  other  Member  may,  by  notice  in  writing 

under his hand addressed to the Central Government, resign his office: 

Provided  that  the  Chairperson  or  any  other  Member  shall,  unless  he  is  permitted  by  the  Central 
Government to relinquish his office sooner, continue to hold office until the expiry of three months from 
the date of receipt of the notice or until a person duly appointed as his successor enters upon his office or 
until the expiry of his term of office, whichever is earlier. 

38. Member to act as Chairperson in certain circumstances.—(1) In the event of the occurrence of 
any vacancy in the office of the Chairperson of the Appellate Tribunal by reason of his death, resignation 
or  otherwise,  the  senior-most  Member  shall  act  as  the  Chairperson  until  the  date  on  which  a  new 
Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his 
office. 

(2) When the Chairperson is unable to discharge his functions owing to absence, illness or any other 
cause, the senior-most Member shall discharge the functions of the Chairperson until the date on which 
the Chairperson resumes his duties. 

39. Staff of Appellate Tribunal.—(1) The Central Government shall provide the Appellate Tribunal 

with such officers and employees as it may thinks fit. 

(2) The  officers  and  employees  of  the  Appellate  Tribunal  shall  discharge  their  functions  under  the 

general superintendence of the Chairperson. 

(3) The salaries and allowances and other conditions of service of the officers and employees of the 

Appellate Tribunal shall be such, as may be prescribed. 

40. Procedure and powers of Appellate Tribunal.—(1) The Appellate Tribunal shall not be bound 
by the procedure laid down by the Code of Civil Procedure, 1908 (5 of 1908), but shall be guided by the 
principles of natural justice and, subject to the other provisions of this Act, the Appellate Tribunal shall 
have powers to regulate its own procedure. 

(2) The Appellate Tribunal shall, for the purposes of discharging its functions under this Act, have the 
same  powers  as  are  vested  in  a  civil  court  under  the  Code  of  Civil  Procedure,  1908  (5  of  1908)  while 
trying a suit, in respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) receiving evidence on affidavits; 

(d)  subject to  the  provisions  of  sections  123  and  124  of  the  Indian  Evidence  Act,  1872  
(1 of 1872), requisitioning any public record or document or copy of such record or document from 
any office; 

15 

 
(e) issuing commissions for the examination of witnesses or documents; 

(f) reviewing its decisions; 

(g) dismissing a representation for default or deciding it ex parte; 

(h) setting aside any order of dismissal of any representation for default or any order passed by it 

ex parte; and 

(i) any other matter, which may be, prescribed by the Central Government. 

(3)  An order made by the Appellate Tribunal under this Act shall be executable by it  as a decree of 

civil court and, for this purpose, the Appellate Tribunal shall have all the powers of a civil court. 

(4) Notwithstanding anything contained in sub-section (3), the Appellate Tribunal may transmit any 
order made by it to a civil court having jurisdiction and the civil court shall execute the order as if it were 
a decree made by that court. 

(5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within 
the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Appellate Tribunal 
shall  be  deemed  to  be  a  civil  court  for  the  purposes  of  sections  345  and  346  of  the  Code  of  Criminal 
Procedure, 1973 (2 of 1974). 

41.  Distribution  of  business  amongst  Benches  of  Appellate  Tribunal.—Where  any  Benches  are 
constituted, the Chairperson may, from time to time, by notification, make provision as to the distribution 
of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may 
be dealt with by each Bench. 

42. Power of Chairperson of Appellate Tribunal to transfer cases.—On the application of any of 
the parties and notice to the parties, and after hearing them, or on his own motion without any notice, the 
Chairperson of the Appellate Tribunal may transfer any case pending before one Bench, for  disposal, to 
any other Bench. 

43.  Decision  to  be  by  majority.—If  the  Members  of  a  Bench  consisting  of  two  Members  differ  in 
opinion on any point, they shall state the point or points on which they differ, and make a reference to the 
Chairperson of the Appellate Tribunal who shall either hear the point or points himself or refer the case for 
hearing  on  the  point  or  points  by  one  or  more  of  the  other  Members  and  the  point  or  points  shall  be 
decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard 
the case, including those who first heard it. 

44.  Members,  etc.,  to  be  public  servants.—The  Chairperson,  Members  and  other  officers  and 
employees of the Appellate Tribunal, the Adjudicating Authority, Approving Authority, Initiating Officer, 
Administrator and the officers subordinate to all of them shall be deemed to be public servants within the 
meaning of section 21 of the Indian Penal Code (45 of 1860). 

45. Bar of jurisdiction of civil courts.—No civil court shall have jurisdiction to entertain any suit or 
proceeding  in  respect  of  any  matter  which  any  of  the  authorities,  an  Adjudicating  Authority  or  the 
Appellate Tribunal is empowered by or under this Act to determine, and no injunction shall be granted by 
any court or other forum in respect of any action taken or to be taken in pursuance of any power conferred 
by or under this Act. 

46. Appeals to Appellate Tribunal.—(1) Any person, including the Initiating Officer, aggrieved by 
an order of the Adjudicating Authority may prefer an appeal in such form and along with such fees, as may 
be prescribed, to the Appellate Tribunal against the order passed by the Adjudicating Authority under sub-
section (3) of section 26, within a period of forty-five days from the date of the order. 

1[(1A)  Any  person  aggrieved  by  an  order  passed  by  the  authority  under  section  54A  may  prefer  an 
appeal in such form along with such fees, as may be prescribed, to the Appellate Tribunal against the said 
order within a period of forty-five days from the date of that order.] 

(2) The Appellate Tribunal may entertain any appeal after the said period of forty-five days, if it is 

satisfied that the appellant was prevented, by sufficient cause, from filing the appeal in time. 

(3) On receipt of an appeal under sub-section (1), 1[or sub-section (1A)] the Appellate Tribunal may, 
after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks 

1. Ins. by Act 23 of 2019, s. 177 (w.e.f. 1-9-2019). 

16 

 
                                                      
fit. 

(4) An Appellate Tribunal while deciding the appeal shall have the power— 

(a) to determine a case finally, where the evidence on record is sufficient; 

(b)  to  take  additional  evidence  or  to  require  any  evidence  to  be  taken  by  the  Adjudicating 
Authority, where the Adjudicating Authority has refused to admit evidence, which ought to have been 
admitted; 

(c) to  require  any  document to  be  produced or any  witness to  be  examined  for the  purposes  of 

proceeding before it; 

(d) to frame issues which appear to the Appellate Tribunal essential for adjudication of the case 

and refer them to the Adjudicating Authority for determination; 

(e)  to  pass  final  order  and  affirm,  vary  or  reverse  an  order  of  adjudication  passed  by  the 
Adjudicating Authority and pass such other order or orders as may be necessary to meet the ends of 
justice. 

(5) The Appellate Tribunal, as far as possible, may hear and finally decide the appeal within a period 

of one year from the last date of the month in which the appeal is filed. 

47. Rectification of mistakes.—1[(1) The Appellate Tribunal or any authority may, in order to rectify 
any mistake apparent on the face of the record, amend any order passed by it under the provisions of this 
Act, within a period of one year from the end of the month in which such order was passed.] 

(2) No amendment shall be made under sub-section (1), if the amendment is likely to affect any person 
prejudicially, unless he has been given notice of intention to do so and has been given an opportunity of 
being heard. 

48. Right to representation.—(1) A person preferring an appeal to the Appellate Tribunal under this 
Act  may  either  appear  in  person  or  take  the  assistance  of  an  authorised  representative  of  his  choice  to 
present his case before the Appellate Tribunal. 

(2)  The Central Government may authorise one or more of its officers to act as presenting officers on 
its  behalf,  and  every  person  so  authorised  may  present  the  case  with  respect  to  any  appeal  before  the 
Appellate Tribunal. 

Explanation.—For the purposes of this section, “authorised representative” means a person authorised 

by the appellant in writing to appear on his behalf, being— 

(i)  a  person  related  to  the  appellant  in  any  manner,  or  a  person  regularly  employed  by  the 

appellant; or 

(ii) any officer of a scheduled bank with which the appellant maintains an account or has other 

regular dealings; or 

(iii) any legal practitioner who is entitled to practice in any civil court in India; or 

(iv)  any  person  who  has  passed  any  accountancy  examination  recognised  in  this  behalf  by  the 

Board; or 

(v) any person who has acquired such educational qualifications as the Board may prescribe for 

this purpose. 

49.  Appeal  to  High  Court.—(1)  Any  party  aggrieved  by  any  decision  or  order  of  the  Appellate 
Tribunal  may  file  an  appeal  to  the  High  Court  within  a  period  of  sixty  days  from  the  date  of 
communication of the decision or order of the Appellate Tribunal to him on any question of law arising out 
of such order. 

(2) The High Court may entertain any appeal after the said period of sixty days, if it is satisfied that 
the  appellant  was  prevented  by  sufficient  cause  from  filing  the  appeal  within  the  period  specified  in  
sub-section (1). 

1. Subs. by Act 23 of 2019, s.178, for sub-section (1) (w.e.f. 1-9-2019). 

17 

 
                                                      
(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall 

formulate that question. 

(4) The  appeal  shall  be  heard only  on  the  question so  formulated, and the respondents  shall, at the 

hearing of the appeal, be allowed to argue that the case does not involve such question. 

(5) Nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, 
for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is 
satisfied that the case involves such question. 

(6) The High Court shall decide the question of law so formulated and deliver the judgment thereon 

containing the grounds on which any decision is founded and may award any cost as it deems fit. 

(7) The High Court may determine any issue which— 

(a) has not been determined by the Appellate Tribunal; or 

(b)  has  been  wrongly  determined  by  the  Appellate  Tribunal,  by  reason  of  a  decision  on  such 

question of law as is referred to in sub-section (1). 

(8)  Save  as  otherwise  provided  in  this  Act,  the  provisions  of  the  Code  of  Civil  Procedure,  1908        

(5  of  1908),  relating  to  appeals  to  the  High  Court shall, as  far  as  may  be,  apply  in  the  case  of  appeals 
under this section. 

CHAPTER VI 

SPECIAL COURTS 

50. Special Courts.—(1) The Central Government, in consultation with the Chief Justice of the High 
Court, shall, for trial of an offence punishable under this Act, by notification, designate one or more Courts 
of Session as Special Court or Special Courts for such area or areas or for such case or class or group of 
cases as may be specified in the notification. 

(2) While  trying  an  offence  under  this  Act,  a  Special  Court  shall  also  try  an  offence  other  than  an 
offence referred to in sub-section (1), with which the accused may, under the Code of Criminal Procedure, 
1973 (2 of 1974), be charged at the same trial. 

(3) The Special Court shall not take cognizance of any offence punishable under this Act except upon 

a complaint in writing made by— 

(i) the authority; or 

(ii)  any  officer  of  the  Central  Government  or  State  Government  authorised  in  writing  by  that 

Government by a general or special order made in this behalf. 

(4) Every trial under this section shall be conducted as expeditiously as possible and every endeavour 
shall be made by the Special Court to conclude the trial within six months from the date of filing of the 
complaint. 

51. Application of Code of Criminal Procedure, 1973 to proceedings before Special Court.—(1) 
Save as otherwise  provided  in  this  Act,  the  provisions  of  the  Code  of  Criminal  Procedure,  1973   
(2  of  1974),  shall  apply  to  the  proceedings  before  a  Special  Court  and  the  persons  conducting  the 
prosecution before the Special Court, shall be deemed to be Public Prosecutors: 

Provided  that  the  Central  Government  may  also  appoint  for  any  case  or  class  or  group  of  cases,  a 

Special Public Prosecutor. 

(2)  A  person  shall  not  be  qualified  to  be  appointed  as  a  Public  Prosecutor  or  a  Special  Public 
Prosecutor under this section unless, the Public Prosecutor has been in practice as an advocate for not less 
than seven years, and the Special Public Prosecutor has been in practice as an advocate for not less than 
ten years in any court. 

(3) Every person appointed as a Public Prosecutor or a Special Public Prosecutor under this section 
shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of 
Criminal Procedure, 1973 (2 of 1974) and the provisions of that Code shall have effect accordingly. 

18 

 
 
52. Appeal and revision.—The High Court may exercise, so far as may be applicable, all the powers 
conferred by Chapter XXIX or Chapter XXX of the Code of Criminal Procedure, 1973 (2 of 1974), on a 
High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court 
of Session trying cases within the local limits of the jurisdiction of the High Court. 

CHAPTER VII 

OFFENCES AND PROSECUTION 

53. Penalty for benami transaction.—(1) Where any person enters into a benami transaction in order 
to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, 
the beneficial owner, benamidar and any other person who abets or induces any person to enter into the 
benami transaction, shall be guilty of the offence of benami transaction. 

(2) Whoever is found guilty of the offence of benami transaction referred to in sub-section (1) shall be 
punishable with rigorous imprisonment for a term which shall not be less than one  year, but which may 
extend to seven years and shall also be liable to fine which may extend to twenty-five per cent. of the fair 
market value of the property. 

54. Penalty for false information.—Any person who is required to furnish information under this Act 
knowingly  gives  false  information  to  any  authority  or  furnishes  any  false  document  in  any  proceeding 
under this Act, shall be punishable with rigorous imprisonment for a term which shall not be less than six 
months but which may extend to five years and shall also be liable to fine which may extend to ten per 
cent. of the fair market value of the property. 

1[54A. Penalty for failure to comply with notices or furnish information.—(1) Any person who fails 

to, — 

(i) comply with summons issued under sub-section (1) of section 19; or 
(ii) furnish  information  as required  under section  21, shall  be  liable to  pay  penalty  of twenty-five 

thousand rupees for each such failure. 
(2) The penalty under sub-section (1) shall be imposed by the authority who had issued the summons or 

called for the information. 

(3)  No  order  under  sub-section  (2)  shall  be  passed  by  the  authority  unless  the  person  on  whom  the 

penalty is to be imposed has been given an opportunity of being heard: 

Provided  that  no  penalty  shall  be  imposed  if,  such  person  proves  that  there  were  good  and  sufficient 

reasons which prevented him from complying with the summons or furnishing information. 

54B. Proof of entries in records or documents.--The entries in the records or other documents in the 
custody of an authority shall be admitted in evidence in any proceedings for the prosecution of any person 
for an offence under section 3 or this Chapter, as the case may be, and all such entries may be proved either 
by— 

(i) the production of the records or other documents in the custody of the authority containing such 

entries; or 

(ii) the production of a copy of the entries certified by the authority having custody of the records or 
other  documents  under  its  signature  stating  that  it  is  a  true  copy  of  the  original  entries  and  that  such 
original entries are contained in the records or other documents in its custody.] 
55.  Previous  sanction.—No  prosecution  shall  be  instituted  against  any  person  in  respect  of  any 

offence under sections 3, 53 or section 54 without the previous sanction of the 2[competent authority].] 

3[Explanation.—For  the  purposes  of  this  section,  “competent  authority”  means  a  Commissioner,  a 
Director,  a  Principal  Commissioner  of  Income-tax  or  a  Principal  Director  of  Income-tax  as  defined  in 
clause (16), clause (21), clause (34B) and clause (34C), respectively, of section 2 of the Income-tax Act, 
1961 (43 of 1961).] 

4[CHAPTER VIII 

MISCELLANEOUS 

1. Ins. by Act 23 of 2019, s. 179  (w.e.f. 1-9-2019). 
2. Subs. by Act 23 of 2019, s. 180,  for “Board” (w.e.f. 1-9-2019). 
3. Ins. by s. 180, ibid. (w.e.f. 1-9-2019). 
4. Subs. by Act 43 of 2016, s. 10, for sections 7 and 8 (w.e.f. 1-11-2016). 

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56. Repeal of provisions of certain Acts.—(1) Sections 81, 82 and 94 of the Indian Trusts Act, 1882 
(2 of 1882), section 66 of the Code of Civil Procedure, 1908 (5 of 1908) and section 281A of the Income-
tax Act, 1961 (43 of 1961), are hereby repealed. 

(2)  For  the  removal  of  doubts,  it  is  hereby  declared  that  nothing  in  sub-section  (1)  shall  affect  the 
continued operation of section 281A of the Income-tax Act, 1961 (43 of 1961) in the State of Jammu and 
Kashmir. 

57. Certain transfers to be null and void.—Notwithstanding anything contained in the Transfer of 
the Property Act, 1882 (4 of 1882) or any other law for the time being in force, where, after the issue of a 
notice under section 24, any property referred to in the said notice is transferred by any mode whatsoever, 
the  transfer  shall,  for  the  purposes  of  the  proceedings  under  this  Act,  be  ignored  and  if  the  property  is 
subsequently confiscated by the Central Government under section 27, then, the transfer of the property 
shall be deemed to be null and void. 

58. Exemption.—(1) The Central Government may, by notification, exempt any property relating to 

charitable or religious trusts from the operation of this Act. 

(2) Every notification issued under sub-section (1) shall be laid before each House of Parliament. 

59. Power of Central Government to issue directions, etc.—(1) The Central Government may, from 
time to time, issue such orders, instructions or directions to the authorities or require any person to furnish 
information as it may deem fit for the proper administration of this Act and such authorities and all other 
persons employed in execution of this Act shall observe and follow the orders, instructions and directions 
of the Central Government. 

(2) In issuing the directions or orders referred to in sub-section (1), the Central Government may have 

regard to anyone or more of the following criteria, namely:— 

(a) territorial area; 

(b) classes of persons; 

(c) classes of cases; and 

(d) any other criterion that may be specified by the Central Government in this behalf. 

(3) No orders, instructions or directions under sub-section (1) shall be issued so as to— 

(a) require any authority to decide a particular case in a particular manner; or 

(b) interfere with the discretion of the Adjudicating Authority in the discharge of its functions. 

60. Application of other laws not barred.—The provisions of this Act shall be in addition to, and 

not, save as hereinafter expressly provided, in derogation of any other law for the time being in force. 

61. Offences to be non-cognizable.—Notwithstanding anything contained in the Code of Criminal 

Procedure, 1973 (2 of 1974), an offence under this Act shall be non-cognizable. 

62. Offences by companies.—(1) Where a person committing contravention of any of the provisions 
of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time 
the contravention was committed, was in charge of, and was responsible to, the company, for the conduct 
of the business of the company as well as the company, shall be deemed to be guilty of the contravention 
and shall be liable to be proceeded against and punished accordingly. 

(2) Nothing  contained in  sub-section  (1),  shall  render  any  person  liable  to  punishment  if  he  proves 

that the contravention took place without his knowledge. 

(3)  Notwithstanding  anything  contained  in  sub-section  (1),  where  a  contravention  of  any  of  the 
provisions  of  this  Act  or  of  any  rule,  direction  or  order  made  thereunder  has  been  committed  by  a 
company and it is proved that the contravention has taken place with the consent or connivance of, or is 
attributable to any neglect on the part of any director, manager, secretary or other officer of the company, 
the director, manager, secretary or other officer shal1 also be deemed to be guilty of the contravention and 
shall be liable to be proceeded against and punished accordingly. 

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Explanation.—For the purposes of this section,— 

(a) “company” means a body corporate, and includes— 

(i) a firm; and 

(ii) an association of persons or a body of individuals whether incorporated or not; and 

(b) “director”, in relation to— 

(i) a firm, means a partner in the firm; 

(ii) any  association  of  persons  or a  body  of  individuals, means  any  member  controlling  the 

affairs thereof. 

63. Notice, etc., not to be invalid on certain grounds.—No notice, summons, order,  document or 
other proceeding, furnished or made or issued or taken or purported to have been furnished or made or 
issued or taken in pursuance of any of the provisions of this Act shall be invalid, or shall be deemed to be 
invalid merely by reason of any mistake, defect or omission in the notice, summons, order, document or 
other proceeding if the notice, summons, order, document or other proceeding is in substance and effect  
in conformity with or according to the intent and purpose of this Act. 

64.  Protection  of  action  taken  in  good  faith.—No  prosecution,  suit  or  other  proceeding  shall  lie 
against the Government or any officer of the Government or the Appellate Tribunal or the Adjudicating 
Authority established under this Act, for anything done or intended to  be done in good faith under this 
Act. 

65.  Transfer  of  pending  cases.—(1)  Every  suit  or  proceeding  in  respect  of  a  benami  transaction 
pending  in  any  Court  (other  than  a  High  Court)  or  Tribunal  or  before  any  forum  on  the  date  of  the 
commencement  of  this  Act  shall  stand  transferred  to  the  Adjudicating  Authority  or  the  Appellate 
Tribunal, as the case may be, having jurisdiction in the matter. 

(2)  Where  any  suit,  or  other  proceeding  stands  transferred  to  the  Adjudicating  Authority  or  the 

Appellate Tribunal under sub-section (1),— 

(a)  the  court,  Tribunal  or  other  forum  shall,  as  soon  as  may  be,  after  the  transfer,  forward  the 
records of the suit, or other proceeding to the Adjudicating Authority or the Appellate Tribunal, as the 
case may be; 

(b) the  Adjudicating  Authority  may,  on  receipt  of the records, proceed  to  deal  with the suit, or 
other proceeding, so far as may be, in the same manner as in the case of a reference made under sub-
section  (5)  of  section  24,  from  the  stage  which  was reached  before  the transfer or  from  any  earlier 
stage or de novo as the Adjudicating Authority may deem fit. 

66. Proceedings, etc., against legal representative.—(1) Where a person dies during the course of 
any  proceeding  under  this  Act,  any  proceeding  taken  against  the  deceased  before  his  death  shall  be 
deemed  to  have  been  taken  against  the  legal  representative  and  may  be  continued  against  the  legal 
representative from the stage at which it stood on the date of the death of the deceased. 

(2)  Any  proceeding  which  could  have  been  taken  against  the  deceased  if  he  had  survived  may  be 
taken against the legal representative and all the provisions of this Act, except sub-section (2) of section 3 
and the provisions of Chapter VII, shall apply accordingly. 

(3) Where any property of a person has been held benami under sub-section (3) of section 26, then, it 
shall be lawful for the legal representative of the person to prefer an appeal to the Appellate Tribunal, in 
place of the person and the provisions of section 46 shall, so far as may be, apply, or continue to apply, to 
the appeal. 

67.  Act  to  have  overriding  effect.—The  provisions  of  this  Act  shall  have  effect,  notwithstanding 

anything inconsistent therewith contained in any other law for the time being in force. 

68.  Power  to  make  rules.—(1)  The  Central  Government  may,  by  notification,  make  rules  for 

carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

21 

 
(a) manner of ascertaining the fair market value under clause 16 of section 2; 

1* 

* 

* 

* 

* 

(d) the powers and functions of the authorities under sub-section (2) of section 18; 

(e) other powers of the authorities under clause (f) of sub-section (1) of section 19; 

(f) the form and manner of furnishing any information to the authority under sub-section (2) of 

section 21; 

(g) the manner of provisional attachment of property under sub-section (3) of section 24; 

(h) the procedure for confiscation of benami property under the second proviso to sub-section 

(1) of section 27; 

(i) the manner and conditions to receive and manage the property under sub-section (1) of  

section 28; 

(j) the manner and conditions of disposal of property vested in the Central Government under 

sub-section (3) of section 28; 

(k) the salaries and allowances payable to and the other terms and conditions of service of the 

Chairperson and other Members of the Appellate Tribunal under sub-section (1) of section 33; 

(l) the manner of prescribing procedure for removal of Chairperson or Member under sub-

section (4) of section 35; 

(m) the salaries and allowances payable to and the other terms and conditions of service of the 

officers and employees of the Appellate Tribunal under sub-section (3) of section 39; 

(n) any power of the Appellate Tribunal under clause (i) of sub-section (2) of section 40; 

(o) the form in which appeal shall be filed and the fee for filing the appeal under sub-section (1) 

of section 46; 

(p) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 

be made, by rules. 

69. Laying of rules and notifications before Parliament.—Every rule made and notification issued 
under this Act shall be laid, as soon as may be after it is made or issued, before each House of Parliament, 
while it is in session, for a total period of thirty days which may be comprised in one session or in two or 
more successive sessions, and if, before the expiry of the session immediately following the session or the 
successive sessions aforesaid, both Houses agree in making any modification in the rules or notifications, 
as the case may be, both Houses agree that the rules or notifications, as the case may be, should not be 
made  or  issued,  the  rule  or  notification,  as  the  case  may  be,  shall  thereafter  have  effect  only  in  such 
modified  form  or  be  of  no  effect,  as  the  case  may  be;  so,  however,  that  any  such  modification  or 
annulment  shall  be  without  prejudice  to  the  validity  of  anything  previously  done  under  that  rule  or 
notification, as the case may be. 

70. Power to  remove  difficulties.—(1)  If  any  difficulty  arises  in  giving  effect  to the  provisions of 
this Act, the Central Government may, by order, published in the Official Gazette, make such provisions 
not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty. 

(2) No order shall be made under this section after the expiry of two years from the commencement 

of this Act. 

(3) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

71.  Transitional  provision.—The  Central  Government  may,  by  notification,  provide  that  until  the 
Adjudicating  Authorities  are  appointed  and  the  Appellate  Tribunal  is  established  under  this  Act,  the 
Adjudicating Authority appointed under sub-section (1) of section 6 of the Money-Laundering Act, 2002 
(15  of  2003)  and  the  Appellate  Tribunal  established  under  section  25  of  that  Act  may  discharge  the 

1. Clauses (b) and (c) omitted by Act 13 of 2021, s. 158 (w.e.f. 1-7-2021). 

22 

 
 
 
 
 
 
 
 
                                                      
functions of the Adjudicating Authority and Appellate Tribunal, respectively, under this Act.] 

1[72.]  Repeal  and  saving.—(1)  The  Benami  Transactions  (Prohibition  of  the  Right  to  Recover 

Property) Ordinance, 1988 (Ord. 2 of 1988) is hereby repealed. 

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be 

deemed to have been done or taken under the corresponding provisions of this Act. 

1. Section 9 renumbered as section 72 thereof by Act 43 of 2016, s. 11 (w.e.f. 1-11-2016). 

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